Scott Amyx (@AmyxIoT), author of Strive, is against getting into Bitcoin now, but sees a future:
“There was a great New York Times article about the Winklevoss Twins, who bet their investment fund on bitcoins. Their 25,000% return is incredible but so is their recent meteoric fall, realizing a paper loss of $443 million. To say that bitcoins are speculative and volatile is an understatement. At least for the Winklevoss Twins, the cost basis was $10/coin back in 2012. But for any non-accredited investors to plunge into bitcoins now at today’s inflated prices would be not only unwise but outright foolish.”
But once the Bitcoin bubble bursts…
“Does that mean we should never invest in bitcoins? No,” says Amyx. “The point is that investors need to start from the perspective of holistic asset allocation and appropriateness to their risk profile. Until there is a substantial market correction, it’s a bubble waiting to burst—and with it, many people will lose a big portion of their (Bitcoin) savings.
“One of the best pieces of advice I ever received was, ‘if you hear your family members, taxi drivers, or neighbors talking about an investment, you know that it’s time to get out!’”
